The real risk-free rate is 4.00%, inflation is expected to be 6.00% this year, and the maturity risk premium is zero. Ignoring any cross-product terms, i.e., if averaging is required, use the arithmetic average, what is the equilibrium rate of return on a 1-year Treasury bond

Answers

Answer 1

The equilibrium rate of return on a 1-year Treasury bond is 10.24%.

Using this formula

T-bond yield = [(1 + Real Risk-free Rate) × (1 + Inflation Rate)] - 1

Let plug in the formula

T-bond yield= [(1 + 0.04) × (1 + 0.06)] - 1

T-bond yield=[(1.04)×(1.06)] -1

T-bond yield= 1.1024 - 1

T-bond yield= 0.1024×100

T-bond yield=10.24%

Inconclusion the equilibrium rate of return on a 1-year Treasury bond is 10.24%.

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Related Questions

By comparing subsidiary accounts to schedules of accounts payable, an
accountant can
O A. prove the accounts payable accounts at the end of a period
O B. determine a company's liabilities after assets and equity
O C. indicate which vendors are the most demanding regarding
payment terms
D. identify where the company can save money on vendor goods

Answers

A comparison of the subsidiary accounts to the schedules of accounts payable will help the accountant to A. prove the accounts payable accounts at the end of a period.

What is a Subsidiary Account?

A subsidiary account tracks the information of certain transactions in detail. Some of the most important subsidiary accounts include accounts receivable and accounts payable.

Thus, by comparing the subsidiary accounts to the schedules of accounts payable, an accountant proves the existence and completeness of the accounts payable balance at the end of a period.

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I need help on creating my resume. I’m a high schooler currently in the 11th grade. I haven’t won any awards here at my high school, but I have won awards in the past like in middle school and elementary school. Can I include some of them on to my resume? Please help!!


Awards that I have won are mvp (middle school) leadership (elementary)

Answers

To create an effective resume, you must explain your educational and professional experiences. If you are still a student looking for your first professional opportunity, a good way to attract the attention of recruiters is to include your awards won in the educational environment on your resume.

How to create a good resume?

Some tips can be important for you to create an attractive resume. It's always good to align your experiences with the area you want to compete in, that is, include courses, extra curricular experiences and awards that have to do with the field of work that interests you. Other important tips are:

Keep your CV objective and conciseReview your personal dataHighlight your personal achievementsBe honest about the information providedInclude your volunteer work

Therefore, for a student to create an effective curriculum, the inclusion of awards and achievements from student life will attract the attention of the recruiter by showing interest, dedication and perspectives of the candidate, being a great opportunity to win a job.

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Here are incomplete financial statements for Cullumber Company. Calculate the missing amounts.
CULLUMBER COMPANY
Balance Sheet
Assets
Cash $ 14,000 Inventory 17,000 Buildings 38,000 Total assets $69,000 Liabilities and Stockholders' Equity Liabilities Accounts payable $ 5,600 Stockholders' Equity Common stock enter a dollar amount
(a) Retained earnings enter a dollar amount
(b) Total liabilities and stockholders' equity $69,000 CULLUMBER COMPANY Income Statement Revenues $85,400 Cost of goods sold enter a dollar amount
(c) Salaries and wages expense 10,270 Net income $enter a dollar amount
(d) CULLUMBER COMPANY Retained Earnings Statement Beginning retained earnings $19,000 Add: Net income enter a dollar amount
(e) Less: Dividends 4,770 Ending retained earnings $34,000

Answers

Answer:

(a) Common Stock = $29,400. (b) Retained earnings = $34,000, (c) Cost of goods sold = $55,360, (d) Net Income = $19,770, (e) Net Income =$19,770

Explanation:

Note: See organized question as attached below to aid understanding

Net income = Ending retained earnings + Dividends - Beginning retained earnings

Net income = $34,000 + $4,770 - $19,000

Net income = $19,770

Net income = Revenue - Cost of goods sold - Salaries and wages expense

$19,770 = $85,400 - Cost of goods sold - $10,270

Cost of goods sold = $85,400 - $19,770 - $10,270

Cost of goods sold = $55,360

Total liabilities and stockholders equity = Accounts payable + Common stock + Retained earnings

$69,000 = $5,600 + Common stock + $34,000

Common stock = $69,000 - $5,600 - $34,000

Common stock = $29,400

Here are incomplete financial statements for Cullumber Company. Calculate the missing amounts. CULLUMBER

Missing amounts :

Common Stock = $29,400

Retained earnings = $34,000,

Cost of goods sold = $55,360

Net Income  = $19,770

Net Income  = $19,770

Net income

= Ending retained earnings + Dividends - Beginning retained earnings

= $34,000 + $4,770 - $19,000

= $19,770

Net income

= Revenue - Cost of goods sold - Salaries and wages expense

$19,770 = $85,400 - Cost of goods sold - $10,270

Cost of goods sold

= $85,400 - $19,770 - $10,270

= $55,360

Total liabilities and stockholders equity

= Accounts payable + Common stock + Retained earnings

$69,000 = $5,600 + Common stock + $34,000

= $69,000 - $5,600 - $34,000

= $29,400

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Entrepreneurs are investors, but not all investors are entrepreneurs. The distinguishing characteristic is?
a. The number of ventures funded
b. Entrepreneurs are investors, but not all investors are entrepreneurs. The distinguishing characteristic is
c. The assumption of risk
d. Whether there is a personal stake in the success or failure of the organization

Answers

Answer:

C. The assumption of risk

Explanation:

Let consider this analogy

100% of 1 and 1% of 100.

This clearly explains the difference between  investors and entrepreneur .Entrepreneur take 100% risk in a business  venture while investors take part risk in a  business venture.

Final answer:

The key difference between entrepreneurs and investors is that entrepreneurs actively participate in the management of their ventures and carry more significant risk, while investors simply fund the venture and carry financial risk on a broader scale.

Explanation:

The distinguishing characteristic between entrepreneurs and investors has to do with the assumption of risk and whether there is a personal stake in the success or failure of the organization. Entrepreneurs take an active role in the development and management of their ventures, often risking their own capital, time, and reputation. They bear the primary responsibility whether things go good or bad. Investors, on the other hand, provide capital for the venture but are not actively involved in daily operations and management. They bear financial risk, but it is typically spread across numerous investments.

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The cash sales for the day, according to the cash register records, totaled $8,356, including sales tax of $473. The actual cash received from cash sales was $8,389. Cost of goods sold related to these sales was $3,360.

Answers

Answer:

The cost of goods sold related to the cash sales is $3,360 because this is the amount of the inventory that was used to produce the products sold in the cash sales. It is calculated by subtracting the gross sales (including sales tax) from the cash received. In this case, $8,389 - $8,356 = $33. This is the amount of cash that was used to purchase inventory to produce the products that were sold in the cash sales. Therefore, the cost of goods sold related to the cash sales is $3,360.

Rolo's charge account statement showed a previous balance of $658.94, a finance charge of $10.71, new purchases of $54.21, $36.28, and $98.56, a credit of $145.81 and a $100.00 payment. What is the new balance?

Answers

If Rolo's charge account statement showed a previous balance of $658.94. The new balance on Rolo's charge account is $812.89.

What is the new balance?

First step is to calculate the subtotal of charges:

Subtotal of charges = Previous Balance + Finance Charge + New Purchases

Subtotal of charges = $658.94 + $10.71 + $54.21 + $36.28 + $98.56

Subtotal of charges = $858.70

Second step is to calculate the subtotal of credits:

Subtotal of credits = Credits - Payment

Subtotal of credits = $145.81 - $100.00

Subtotal of credits = $45.81

Now let calculate the new balance:

New Balance = Subtotal of charges - Subtotal of credits

New Balance = $858.70 - $45.81

New Balance = $812.89

Therefore the new balance on Rolo's charge account is $812.89.

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For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income $ 360,000 Permanent difference (15,400 ) 344,600 Temporary difference-depreciation (19,100 ) Taxable income $ 325,500 Tringali's tax rate is 25%. Assume that no estimated taxes have been paid. What should Tringali report as its income tax expense for its first year of operations

Answers

Answer:

$81,375

Explanation:

Calculation for What should Tringali report as its income tax expense for its first year of operations

Using this formula

Income tax expense=Taxable income*Tax rate

Let plug in the formula

Income tax expense=$325,500 x 25%

Income tax expense=$81,375

Therefore What should Tringali report as its income tax expense for its first year of operations will be $81,375

Discovering the process of distribution of commonly used items is quite interesting and opens eyes to several new processes and careers! Your group will be in charge of dissecting the process of distribution related to any of the following items:

*Televisions

*Milk in Cartons

*Laundry Detergent

*Refrigerators

*Lumber

*Pineapples

*Video Games

*Watches

*Coffee

*Shoes

*Football Helmets

*Pencils



Narrow your research by selecting a brand or company that manufactures or distributes one of the products listed above. For example, not all shoes come from the same country, manufacturer, distributor, or are distributed alike. Select a brand of shoes you are familiar with and begin the search. The goal is to trace the process from production to consumer.

Answers

Does this help any? If you just go by the steps?
Discovering the process of distribution of commonly used items is quite interesting and opens eyes to

A. The variety of Riverside Ranger logo T-shirts includes 12 different designs. Setup between designs takes one hour (and GHS18,000), and, after setting up, you can produce 1,000 units of a particular design per hour (at a cost of GHS8,000). Does this production exhibit scale economies or scope economies?

Answers

The production of a variety of designs of Riverside Ranger logo T-shirts exhibits scope economies because it allows for a broader product offering and results in lower average costs per unit.

This production exhibits scope economies because it involves producing a variety of different designs. Scope economies occur when it is more cost-effective to produce a range of products or services rather than specializing in a single product or service.

In this case, producing 12 different designs of Riverside Ranger logo T-shirts allows for a broader product offering, which can attract a wider customer base and increase sales. The setup cost of GHS18,000 per design is a fixed cost that is incurred regardless of the number of units produced, and this cost is spread over the 1,000 units produced per hour.

Therefore, the more designs that are produced, the more the fixed cost is spread out, and the lower the average cost per unit becomes. This means that producing 12 different designs results in lower average costs per unit compared to producing a single design.

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Define a random variable that represents the time in minutes required to assemble the product

Answers

A random variable x is a numerical outcome of a probability experiment. There is a numerical value which is determined by chance for each outcome in the procedure or experiment. Therefore, a random variable is used for describing outcomes using numerical values.

x = time in minutes

Wally's Walleyes wants to introduce a new product that has a start-up cost of $7,800. The product has a 2-year life and will provide cash flows of $4,500 in Year 1 and $4,300 in Year 2. The required rate of return is 15 percent. Should the product be introduced? Why or why not?

Answers

The calculated NPV is negative, indicating that the present value of expected cash flows does not exceed the start-up cost of the project. In other words, the project is expected to generate a net loss.

To determine whether Wally's Walleyes should introduce the new product, we can calculate the net present value (NPV) of the project. The NPV measures the present value of expected cash flows, taking into account the required rate of return.

To calculate the NPV, we need to discount the cash flows using the required rate of return (15 percent). The formula for calculating NPV is:

NPV = Cash Flow Year 1 / (1 + Required Rate of Return)^1 + Cash Flow Year 2 / (1 + Required Rate of Return)^2 - Start-up Cost

\(NPV = $4,500 / (1 + 0.15)^1 + $4,300 / (1 + 0.15)^2 - $7,800\)

\(NPV = $4,500 / 1.15 + $4,300 / (1.15)^2 - $7,800\)

NPV = $3,913.04 + $3,537.41 - $7,800

NPV = -$350.55

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L 5.4.2 Test (CST)!
Question 8 of 20
Which of these is a consequence of speeding?

Answers

Answer:

If you are pulled over by the police you will get a ticket for speeding.

You will go to court and be fined. In many cases, drivers can get jury duty or pay a fine depending on how much the state charges for speeding.

If you are not pulled over and are speeding the consequences can be indefinite. You can crash into another vehicle and cause physical damage to other passengers in the other vehichle not only to yourself. The damage can sometimes be irreparable like comas, paralyzed, or even brain/spinal damage.

Need more? Comment and let me know what you need.

4. What was the closing price of the corporation on July 26th?

Answers

The closing price of a security, such as a stock or a commodity, is the final price at which it was traded on a particular trading day. The calculation of the closing price depends on the market in which the security is traded.

What is closing price?

If you have access to the historical data of the security, you can easily calculate the closing price by finding the last recorded price of the security on a given trading day. Many financial websites and data providers offer this information in their daily summary of a security's trading activity.

However, if you are looking to calculate the closing price in real-time, you can use a real-time data provider that offers the latest market quotes for the security you are interested in. The closing price is usually determined at the end of the trading day, which varies depending on the market and the security being traded.

In general, to calculate the closing price of a security, you need to find the last traded price of the security for the day. This information can be obtained from various sources, such as stock exchange websites, financial news websites, or real-time data providers. Once you have this information, you can use it to calculate the closing price of the security for that particular trading day. An overview was given.

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An increase in a bond's yield to maturity results in a price decline that is ________ the price increase resulting from a decrease in yield of equal magnitude.

Answers

The correct answer to the blank is smaller than

An increase in a bond's yield to maturity results in a price decline that is smaller than the price increase resulting from a decrease in the yield of equal magnitude.

What is the meaning of Bond?

A bond is a borrower's guarantee to pay a creditor their principal amount plus, typically, interest on the loan. Governments, local governments, and businesses all issue bonds.

An IOU-like debt security is called a bond. Borrowers create bonds to get money from investors who are willing to lend to them for a set length of time. When you purchase a bond, you are making a loan to the issuer, which could be a corporate, government, or municipal entity.

Savings bonds, agency bonds, municipal bonds, corporate bonds, and treasuries are some examples of bonds. Treasury bonds, which are the safest but have the lowest interest rates, are typically sold at auction.

The category of investments known simply as "fixed-income securities" includes bonds. Because they are debt obligations, the investor lends a specific sum of money (the principal) to an organization or government for a defined period in exchange for a time recorded of interest payments (the yield).

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In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available:
Net income for the year was $ 52,000
Accounts payable decreased by 18,000
Accounts receivable increased by 25,000
Inventories increased by 5,000
Depreciation expense was 30,000
Net cash provided by operating activities was
A. $34,000.
B. $60,000.
C. $70,000.
D. $80,000.
E. $52,000.

Answers

Answer:

A. $34,000.

Explanation:

We can determine the Net cash provided by operating activities by preparing the  Cash flow from Operating Activities Section of the Cash flow Statement using the Indirect method as below

Cash flow from Operating Activities

Net income for the year                                    52,000

Adjustment for Non - Cash items :

Depreciation expense                                       30,000

Adjustment for Changes in Working Capital items :

Decrease in Accounts payable                        (18,000)

Increase in Accounts receivable                     (25,000)

Increase in Inventories                                       (5,000)

Net cash provided by operating activities       34,000

Therefore,

Net cash provided by operating activities was A. $34,000.

What is the decision and reasoning of the Michael J French v. American Airlines- 2009 US dist. LEXIS 48654 (US district court Utah central division)

Answers

The court ruled in favor of American Airlines in the Michael J. French v. American Airlines case, finding that the airline had not broken the Americans with Disabilities Act by mandating that the passenger's service animal remain in a kennel throughout the flight.

An airline passenger's request for a reasonable accommodation under the Americans with Disabilities Act (ADA) was the subject of the Michael J. French v. American Airlines lawsuit in 2009. A disabled traveler named Michael J. French asked American Airlines to give him a special seat for his Golden Retriever service dog on a flight from Utah to Pennsylvania. American Airlines turned down the demand.

The case was handled in Utah's Central Division of the US District Court.

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apartmentsrus, a property management firm, presents a standard-form lease for an apartment to barnaby, a potential tenant. apartmentsrus does not pressure barnaby to sign the lease, but offers it on a take-it-or-leave-it basis. barnaby signs the lease, but later wants to withdraw from the contract. he is most likely to avoid enforcement of the lease on the groun

Answers

In this case, Barnaby may be able to avoid enforcement of the lease on the grounds of unconscionability. Unconscionability is a legal theory used to invalidate contracts that are so grossly unfair or one-sided that enforcement of the contract would be unjust.

It generally applies when one party has substantially more bargaining power than the other, such as when a party is presented with a standard-form contract and not given meaningful opportunity to negotiate terms. In such cases, the weaker party may be able to avoid enforcement of the contract. A lease agreement is a contract between a tenant and landlord in terms of a rental property.

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What cultural shift lead to the rise in popularity of Whole Foods?​

Answers

Answer:

The spike in the number of people who wanted to eat healthier.

Explanation:

Whole Foods is aimed at selling the most high-quality organic products. Organic is allegedly healthier than regular food (since they are required not to use chemicals to treat them), and this helped Whole Foods when the "eat healthier" fad came around in the US and other countries.

Which of the following activities would waste the most time?
a. Rich tries to multitask writing a report and reading a memo, and has to re-write the report and
re-read the memo, which takes an hour.

b. During a departmental meeting, Barry and Scott make small talk for twenty minutes while the
other six meeting members sit and listen.

c. Greg asks Tony a question about work and then talks to him for ten minutes about who will
win the game tonight.

d. Barbara composes an e-mail during her thirty minute train ride to work.

Answers


Answer:A

The answer should be “A” because it does say it takes an hour and that seems like the most time consuming task out of all of them

Describe the risks involved in auditing financial investments, including why the auditors might need specialized skills.

Answers

The risks involved in auditing financial investments, including  the auditors might need specialized skills is fraud risk.

What is an investment?

An Investment is the dedication of an asset to gain an increase in value over a period of time. Investment needs a sacrifice of some present asset, such as time, money, or effort. In finance, the purpose of investing is to generate a return from the invested asset in a time period.

As a consequence of the constant corporate scandals linked to corruption as well as the emergence of new regulations worldwide, many executives recognize/identifies that the risk of fraud and irregular behaviors inevitably integrates their agendas, and they are fully aware of the need to create specific measures aimed at its timely and effective management.

Effective fraud risk management provides organizations the tools to manage risk in accordance with regulatory requirements, as well as with the needs of the business, the organization and market expectations.

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given the corproate and product level reporting timelines, which eu taxonomony objectie does the product level reproting help companies achieve

Answers

The purpose of harmonising financial statements under the EU Taxonomy is achieved with the use of product level reporting. It offers comprehensive and consistent information, enhancing comparability.

What is the timetable for the EU taxonomy goals?

An outline of deadlines for the EU taxonomy timeline 2022 was created by a team of technical experts from the European Commission. The objective is to attract more money to finance green operations and to give business and investment organisations clarity about green initiatives.

What goals does the EU taxonomy seek to achieve?

Companies, investors, and regulators would have access to proper definitions of whether economic activities qualify as ecologically sustainable thanks to the EU taxonomy.

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Question:

Given the corporate and product level reporting timelines in the EU Taxonomy, which objective does the product level reporting help companies achieve?

While on a call with an emotional customer, the credit card they provide to purchase your service is declined by your system. They become even more agitated and swear it has the necessary funds. What would you do?

1. Advise the customer of the declined card and suggest they call back when they get things figured out so you can help them right away.

2. Advise the customer of the declined card and apologize for the issue then ask if they have another card or a family member that can assist with the payment.

3. Explain to the customer that their card was declined and ask them if they'd like you to try again using different card.

Answers

When the credit card provided by the customer gets decline then  advise the customer of the declined card and apologize for the issue then ask if they have another card or a family member that can assist with the payment.

In many instances the purchaser could be as mystified by the decline credit  cards.The perfect element to do in the ones conditions is to really request a different form of payment through another credit card, an debit from the consumer's financial institution account, a test, or even cash.The upper threshold of costs you could placed on the cardboard. it is your bank's way of announcing you can not borrow any extra cash until you are making a fee.

It is essential to remember that a decline reaction means the card company is unable or unwilling to offer an authorization on the cardholder's account. It does no longer mean that there has been an blunders running the transaction. Card issuers decline transactions for plenty exclusive motives

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38. A log book used to record information about visitors who call in an organization is called A. Complimentary card B. Telephone directory C. Telephone pad D. Visitor's register E. Visitor's request form​

Answers

A logbook used to record information about visitors who call in an organization is called an Option D. Visitor's Register.

A visitor's register is an essential tool for maintaining security and professionalism in a workplace. It helps in keeping track of the people entering and leaving the premises, which aids in monitoring the flow of visitors and ensuring their proper identification.

A visitor's register typically includes columns for the visitor's name, contact details, purpose of visit, time in, time out, and the name of the person they are meeting. This information is valuable in case any follow-up is required or for emergency situations where it's crucial to know who is on the premises.

In contrast, a complimentary card (A) is a business card exchanged during formal introductions. A telephone directory (B) is a listing of telephone numbers organized by name or business. A telephone pad (C) is a notepad used for taking messages or notes during phone calls, and a visitor's request form (E) may be a document required to be filled out by visitors for specific purposes or access.

In summary, a visitor's register (D) is the correct term for a log book used to record information about visitors who call an organization. It helps maintain security, monitor visitor flow, and ensure proper identification of guests. Therefore, the correct option is D.

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Examine 4 techniques to managing change in organisations

Answers

Answer:

Start with a small group

Identify a keystone change

Network the movement

Surviving victory

Jzkdmsmsksosokswkksk there correct marsh in army

What can be protected by a patent?

A. The right to have exclusive use of real property

B. The right to use a specific and unique creative production

C. The night to use unique and innovative ideas

D. The right to use any type of intellectual property

Answers

Answer:

C.

Explanation:

You can patent an Idea so that no one else can use it.

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1) Sid’s Skins makes a variety of covers for electronic organizers and portable music players. The company’s designers have discovered a market for a new clear plastic covering with college logos for a popular music player. Market research indicates that a cover like this would sell well in the market priced at $21. Sid’s desires an operating profit of 20 percent of costs.
a. What is the highest acceptable manufacturing cost for which Sid’s would be willing to produce the cover? What is the company’s profit for each cover using the highest acceptable manufacturing cost? (Remember: Profit = Selling Price – Cost) Show your work.

2) Domingo Corporation makes a variety of headphones with logos. The company has discovered a new market for wireless headphones with logos. Market research indicates that these headphones would sell well in the market priced at $149 each. Domingo desires an operating profit of 25 percent of costs.
a. What is the highest acceptable manufacturing cost for which Domingo would be willing to produce the headphones? What is the company’s profit for each set of headphones using the highest acceptable manufacturing cost? Show your work.

Answers

The company's profit for each cover using the highest acceptable manufacturing cost would be $4.20 and The company's profit for each set of headphones using the highest acceptable manufacturing cost would be $37.75

What is manufacturing?

Manufacturing is the process of transforming raw materials into products, either through a mechanical or chemical process. It involves taking a raw material, such as metal, plastic, or wood, and transforming it into a useful item. Manufacturing also includes the creation of parts and components, assembly into a final product, and packaging for shipping or sale.

1) For Sid's Skins to achieve an operating profit of 20%, the highest acceptable manufacturing cost would be $16.80 ($21 x 0.8 = $16.80).
The company's profit for each cover using the highest acceptable manufacturing cost would be $4.20 ($21 - $16.80 = $4.20).
2) For Domingo Corporation to achieve an operating profit of 25%, the highest acceptable manufacturing cost would be $111.25 ($149 x 0.75
= $111.25).
The company's profit for each set of headphones using the highest acceptable manufacturing cost would be $37.75 ($149 - $111.25
= $37.75).

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The Timberlake-Jackson Wardrobe Co. has 10.5 percent coupon bonds on the market with nine years left to maturity. The bonds make annual payments and have a par value of $1,000. If the bonds currently sell for $1,142.49, what is the YTM

Answers

Answer:

bébete la pastilla Randy jariel

1. Evaluate the situation that Mason and Shepherd find themselves in with respect to their existing employers. What are the legal and ethical issues raised

Answers

Answer:

The answer is provided in two separate headings for Mason and Shepherd with regard to the issues faced by them and how to handle them.

Explanation:

Mason

Mason's goal is start a venture by utilising the information received from the company she has worked for. This could lead to the violation of the agreement with her employer with regard to Non-competition, Non-disclosure and Development provisions.

So to tackle this situation she needs to first of all prove that the business is not a competitor of ATS. Moreover, she must refrain from coming into contact of the current customers of ATS. Finally, data kept in her office computer on the details of the new venture is  currently under the ownership of ATS. Therefore, she should removed that data. Other than that she could negotiate with ATS with the help of a legal consultant.

Shepherd

Shepherd has signed an agreement with NOVA, where he is being bound to disclose all the inventions he has worked on so far. This problem is more likely on the intellectual property law.

To resolve this issue he could own his inventions by way of patent the translate engines as early as possible. While the process may take some years, it will be protected from NOVA as it would in pending status.

The table below shows Lanark's production possibilities.


A B C D E F
Wheat 0 180 315 405 450 468
Cars 190 181 163 127 73 0

a. If Lanark is producing 145 cars, it can produce approximately
wheat.

b. If Lanark is currently producing combination C, the cost of 90 more wheat is

(Click to select)
.

c. If Lanark is currently producing combination D, the approximate per unit cost of an additional car is

(Click to select)
. If necessary, round your answers to 1 decimal place. Remember to round 0.05 up to 0.10.

Answers

If Lanark is currently generating 145 buses, it can generate about 180 units of wheat. .

b. The cost of 90 further wheat is 90.

c. The approximate per unit cost of an fresh auto is 54.

To determine the approximate quantum of wheat Lanark can produce if it's presently producing 145 buses , we need to find the matching value in the" Wheat" column. Grounded on the given table, we can see that the values in the" buses" column drop from left to right. thus, we need to find the combination where the number of buses is closest to 145, which is combination B. In combination B, Lanark can produce roughly 180 units of wheat.

We can find the cost of 90 further wheat by comparing the wheat values between combinations C and D, If Lanark is presently producing combination C. The wheat value in combination C is 315, and the wheat value in combination D is 405.

The difference between these two values represents the fresh wheat produced when moving from combination C to combination D. In this case, the difference is 405- 315 = 90. thus, the cost of 90 further wheat is the difference between the wheat values in combination C and D, which is 90.

we can determine the approximate per unit cost of an fresh auto by comparing the auto values between combinations D and E, If Lanark is presently producing combination D. The auto value in combination D is 127, and the auto value in combination E is 73.

The difference between these two values represents the drop in auto product when moving from combination D to combination E. In this case, the difference is 127- 73 = 54.

thus, the approximate per unit cost of an fresh auto is the difference between the auto values in combination D and E, divided by the drop in auto product, which is 54/ 1 = 54.

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Given the answers for Citi and SVB on the chart answer the following: What hedging strategies would you suggest to the management of Citi and SVB to protect their net interest margins? In particular, discuss possible financial instruments that might be used to hedge current interest rate risks of the two companies and what position you might take (long or short) for each company given each companies risk exposure.

Given the answers for Citi and SVB on the chart answer the following: What hedging strategies would you

Answers

To be able to protect their net interest margins, both Citi as well as SVB could consider using hedging strategies to lower the interest rate risks. A  possible financial instruments they can be able to use are:

Interest rate swapsInterest rate futuresInterest rate options

What is the hedging strategies ?

An interest rate swap allows parties to agree to pay fixed or floating interest rates, reducing risks for Citi and SVB. Interest rate futures are agreements to buy or sell financial instruments at a predetermined price in the future.

Citi and SVB use interest rate futures to hedge risks. Interest rate options give the holder the right to buy or sell at a predetermined price.

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See text below



Citigroup

Interest Income  74,408,000.00

interest Expense   202,000.00

Net Interest Income    74,206,000.00

1%                                742,060.00

SVB

Interest Income             514,668.00

interest Expense               0.00

Net Interest Income      514,668.00

1%                                        5,146.68

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